Key Takeaways
- President Milei dissolved the Investigation Task Unit that was probing the $LIBRA token.
- The UTI gathered data from various government bodies and has fulfilled its intended purpose.
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Argentine President Javier Milei has officially disbanded the Investigation Task Unit (UTI), the special body tasked with investigating the controversial $LIBRA token, which has been entangled in a political and financial scandal involving insider trading accusations, illicit fundraising, and suspected ties to public officials.
The decision, formalized by Decree 332/2025, was published on May 19 in the country’s official gazette.
The decree cites that the unit had fulfilled its assigned task of gathering information and forwarding it to the Public Prosecutor’s Office. The UTI had coordinated with various government bodies, including the Anti-Corruption Office, the Central Bank, the Financial Information Unit, and the National Securities Commission.
However, no official findings or reports from the UTI have been publicly released.
The UTI was created on February 19, days after Milei publicly endorsed the LIBRA project on X, which immediately triggered a rapid surge in the token’s price. He later distanced himself from the project, claiming he had merely shared information, not promoted it.
The token plummeted from a peak valuation of $4.5 billion following President Milei’s withdrawal of support. According to GeckoTerminal, LIBRA now trades at approximately $0.06, representing a 98% drop from its high.
The team behind LIBRA, including Hayden Davis, allegedly sold large portions of their holdings, causing the token’s price to crash. The collapse resulted in estimated losses of $250 million for approximately 74,000 investors.
The scandal led to political controversy, calls for impeachment against Milei, and investigations into possible misconduct, including links to the KIP Protocol associated with the project.
Ongoing judicial investigations
Milei can end an investigation, but not the investigators.
Over 100 criminal complaints alleging fraud and deceptive promotion have been filed against President Javier Milei in connection with the LIBRA token.
In response, the Argentine Congress established a commission of inquiry and summoned government officials to testify under oath.
At the international level, several law firms have proposed class-action lawsuits on behalf of foreign investors, accusing Milei of negligence and misleading promotion that allegedly caused severe financial losses.
According to a recent report from the local news outlet Página/12, Judge María Romilda Servini, appointed to lead the judicial inquiry following a wave of fraud allegations, recently ordered the Central Bank of Argentina to disclose banking records belonging to both President Milei and his sister, Karina Milei, who serves as Secretary General of the Presidency.
CoinDesk reported in February that internal messages reviewed before the token’s collapse suggested Davis allegedly exerted influence over President Milei by making undisclosed payments to his sister.
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